System on Module (SoM) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (ARM Architecture, X86 Architecture, Power Architecture), By Standard (COM Express, SMARC, Qseven, ETX/XTX, COM-HPC, and Others), By Application (Industrial Automation, Medical, Entertainment, Transportation, Test & Measurement, and Others), By Region, Competition, 2019-2029F

Market Overview

Global System on Module (SoM) Market was valued at USD 1.20 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of  8.25 % through 2029. The System on Module (SoM) market refers to the segment of the semiconductor industry focused on highly integrated, small form-factor computing modules that encapsulate essential components of a complete electronic system. SoMs, also known as Computer on Modules (COMs), typically include processors, memory, storage, and sometimes additional peripherals such as networking interfaces and sensors on a single board. These modules serve as building blocks for embedded systems and IoT devices, providing a streamlined approach to designing and deploying complex electronics.

Key characteristics of SoMs include their compact size, standardized form factors, and modular design, which facilitate rapid prototyping, shorten time-to-market, and simplify hardware development for electronics manufacturers. By integrating critical components into a single module, SoMs offer significant advantages in terms of reduced development costs, lower risks associated with hardware design, and scalability across different applications and product lines.

The market for SoMs spans across various industries including industrial automation, healthcare, telecommunications, transportation, consumer electronics, and more recently, smart home devices and edge computing applications. Industries leverage SoMs to embed intelligence and connectivity into products, enhancing functionality and performance while maintaining a compact footprint.

Technological advancements in semiconductor fabrication, particularly in system-on-chip (SoC) integration and low-power consumption, have driven the evolution of SoMs towards higher computational capabilities and energy efficiency. This enables SoMs to support increasingly demanding applications such as real-time data processing, AI inference at the edge, and industrial control systems.

The SoM market benefits from the growing adoption of IoT and connected devices, where modular solutions like SoMs provide a flexible platform for integrating diverse sensors, wireless communication protocols, and cloud connectivity. This trend towards interconnected devices and distributed computing further expands the opportunities for SoMs in building smart, interconnected systems.

Key players in the SoM market include semiconductor companies specializing in embedded computing solutions, module manufacturers offering customizable platforms, and system integrators providing tailored solutions for specific industry needs. These stakeholders collaborate to innovate SoM designs, enhance interoperability, and address emerging market requirements such as cybersecurity, ruggedization for harsh environments, and compliance with industry standards.

The System on Module (SoM) market represents a vital component of the semiconductor industry, enabling rapid innovation and deployment of embedded computing solutions across diverse sectors. With its compact size, integrated components, and modular approach, SoMs are poised to play a pivotal role in the future of IoT, edge computing, and smart device ecosystems, driving continued growth and innovation in embedded systems technology.

Key Market Drivers

Increasing Demand for Customizable and Scalable Embedded Solutions

The System on Module (SoM) market is experiencing significant growth driven by the increasing demand for customizable and scalable embedded solutions across various industries. SoMs offer a compact, pre-integrated computing platform that includes processors, memory, storage, and often additional components such as wireless modules and interfaces. This integration simplifies the development process for embedded systems by reducing design complexity and time-to-market. Organizations across sectors like industrial automation, healthcare, automotive, and consumer electronics are turning to SoMs to leverage their versatility in designing applications ranging from IoT devices to complex machinery.

One of the primary advantages of SoMs is their modularity, which allows developers to select a module that matches their specific requirements in terms of processing power, connectivity options, and form factor. This modularity not only accelerates product development cycles but also enables easier upgrades and maintenance. For instance, in industrial automation, where ruggedness, reliability, and long-term support are critical, SoMs provide a robust foundation for building control systems and data acquisition devices. Similarly, in the healthcare sector, SoMs are used in medical devices where compact size, low power consumption, and seamless integration of sensors and communication interfaces are essential.

The scalability of SoMs supports future-proofing of embedded systems, allowing manufacturers to easily adapt to evolving technological standards and performance requirements. This scalability is particularly advantageous in sectors like automotive, where advancements in vehicle connectivity, autonomous driving technologies, and infotainment systems necessitate flexible and powerful embedded computing solutions. By adopting SoMs, automotive OEMs and suppliers can streamline development efforts and focus more on innovation and differentiation rather than reinventing foundational hardware components.

The increasing demand for customizable and scalable embedded solutions is a significant driver propelling the growth of the SoM market. As industries continue to prioritize efficiency, flexibility, and innovation in their embedded systems, SoMs provide a compelling solution that meets these requirements while facilitating faster time-to-market and reducing development costs.

Proliferation of IoT and Edge Computing Applications

The System on Module (SoM) market is thriving due to the rapid proliferation of Internet of Things (IoT) and edge computing applications across industries worldwide. IoT devices are becoming increasingly prevalent, embedded in everyday objects to collect, process, and transmit data for various applications such as smart homes, industrial monitoring, and asset tracking. Edge computing, which involves processing data near the source rather than in centralized data centers, is gaining traction to meet the growing demand for real-time analytics, reduced latency, and improved data privacy.

SoMs play a crucial role in IoT and edge computing ecosystems by providing a compact and power-efficient platform that can handle the computational demands of edge devices while ensuring seamless connectivity and interoperability. For example, in smart agriculture, SoMs enable the development of sensor nodes and gateways that monitor soil conditions, crop health, and irrigation systems, optimizing agricultural operations and resource management. Similarly, in industrial IoT (IIoT), SoMs are deployed in edge devices to collect and analyze data from manufacturing equipment, enhancing predictive maintenance, process efficiency, and overall productivity.

The versatility of SoMs supports diverse connectivity options, including Wi-Fi, Bluetooth, Zigbee, and cellular technologies, enabling IoT devices to communicate effectively with each other and with cloud-based platforms. This connectivity is essential for enabling remote monitoring, control, and management of distributed IoT deployments across different environments and geographic locations. In edge computing scenarios, SoMs facilitate local data processing and decision-making, reducing the need for continuous reliance on cloud infrastructure and optimizing bandwidth usage.

As the adoption of IoT and edge computing continues to expand across sectors such as healthcare, transportation, and smart cities, the demand for SoMs is expected to grow further. Manufacturers and developers are leveraging SoMs to accelerate innovation in connected devices, address specific industry challenges, and deliver compelling IoT solutions that enhance operational efficiency, improve decision-making, and create new business opportunities.

Growing Adoption of AI and Machine Learning Technologies

The System on Module (SoM) market is witnessing robust growth driven by the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies across various industries. AI and ML applications are transforming businesses by enabling intelligent automation, predictive analytics, and personalized user experiences. SoMs provide a powerful and efficient computing platform that supports the computational requirements of AI algorithms, making them ideal for embedded AI applications in edge devices.

One of the key advantages of SoMs in AI and ML deployments is their ability to integrate high-performance processors, GPUs, and specialized accelerators optimized for machine learning tasks. This hardware acceleration enhances the speed and efficiency of AI inference tasks, enabling edge devices to process data locally and respond in real-time without relying heavily on cloud infrastructure. For example, in autonomous vehicles, SoMs are used to power onboard AI systems that process sensor data, analyze road conditions, and make split-second decisions to ensure safe navigation and driving.

SoMs facilitate the development of intelligent IoT devices that can recognize patterns, detect anomalies, and optimize operational processes autonomously. In healthcare, SoMs enable medical devices to perform real-time analysis of patient data, assist in diagnostics, and support remote monitoring applications. In retail and customer service industries, SoMs power smart devices that use AI-driven algorithms to personalize shopping experiences, recommend products, and automate customer support interactions.

The scalability and flexibility of SoMs support the deployment of AI and ML models across diverse environments and applications. Developers can choose from a range of SoM options with varying computational capabilities and form factors to meet specific performance requirements and space constraints. This scalability is particularly advantageous in sectors such as manufacturing, where AI-powered predictive maintenance and quality control systems rely on embedded SoMs to optimize production processes and minimize downtime.

The growing adoption of AI and machine learning technologies is a significant driver fueling the expansion of the SoM market. As industries embrace AI-driven innovation and seek to embed intelligence into their products and services, SoMs offer a reliable and efficient platform for realizing the potential of AI at the edge, driving operational efficiencies, enhancing decision-making capabilities, and delivering transformative business outcomes.

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Key Market Challenges

Complexity and Customization Demands

The System on Module (SoM) market faces significant challenges related to the complexity and customization demands from diverse industries. SoMs, which integrate key components such as processors, memory, and peripherals into a single module, offer several advantages including reduced time-to-market, scalability, and simplified design. However, catering to the varied requirements of different applications across industries poses a considerable challenge. 

One of the primary complexities arises from the need to customize SoMs to meet specific performance, power consumption, and form factor requirements of different applications. Industries such as industrial automation, healthcare, automotive, and consumer electronics each have unique specifications and standards that must be adhered to for successful integration of SoMs. For instance, automotive applications demand SoMs that can operate reliably under extreme temperature ranges and stringent quality standards, whereas consumer electronics may prioritize compact size and energy efficiency.

The rapid pace of technological advancements and the continuous evolution of semiconductor components pose another challenge. SoM manufacturers must keep pace with the latest developments in processors, GPUs, communication interfaces, and other integrated components to offer competitive and future-proof solutions. This necessitates frequent updates to SoM designs and firmware, which can increase development costs and complexity.

Addressing these challenges requires robust collaboration between SoM manufacturers, semiconductor suppliers, and end-users to ensure that SoM designs can effectively integrate with existing systems and support future upgrades. Standardization efforts within the industry, such as form factor specifications like COM Express and SMARC, help mitigate some of the customization challenges by providing a common framework for SoM integration. However, achieving the right balance between standardization and customization remains a critical challenge in the SoM market.

The complexity of SoM integration into larger systems adds another layer of challenge. System designers must ensure compatibility between SoMs and peripheral components, interface protocols, and software environments. This integration complexity increases as SoMs become more feature-rich and support a broader range of applications and connectivity options.

While System on Modules offer compelling advantages in terms of integration, scalability, and time-to-market, they face significant challenges related to customization demands across diverse industries, keeping pace with technological advancements, and ensuring seamless integration into existing systems.

Supply Chain Disruptions and Component Shortages

Another pressing challenge for the System on Module (SoM) market is the increasing frequency and severity of supply chain disruptions and component shortages. The SoM market relies heavily on a global network of semiconductor suppliers, contract manufacturers, and distributors to source critical components such as processors, memory chips, and communication interfaces. However, recent years have seen unprecedented disruptions that have strained the supply chain and impacted SoM production and delivery timelines.

The COVID-19 pandemic highlighted vulnerabilities in the global supply chain, with lockdowns, factory closures, and logistic challenges causing significant disruptions in component manufacturing and distribution. These disruptions resulted in extended lead times, price increases, and shortages of key components essential for SoM production. Semiconductor shortages, in particular, have been a major bottleneck affecting the entire electronics industry, including SoM manufacturers.

Geopolitical tensions and trade policies have exacerbated supply chain uncertainties, leading to trade restrictions, tariffs, and export controls that disrupt the flow of components across borders. This unpredictability in the regulatory landscape adds another layer of complexity for SoM manufacturers who must navigate compliance requirements and mitigate risks associated with geopolitical tensions.

Mitigating supply chain disruptions requires proactive strategies such as building resilient supplier relationships, diversifying sourcing options, and maintaining buffer stocks of critical components. However, these strategies can increase costs and complexity for SoM manufacturers, impacting pricing and profitability. Collaborative efforts across the industry, including partnerships with component suppliers and transparent communication with customers, are essential to navigating supply chain challenges effectively.

The SoM market's reliance on advanced semiconductor technologies, which are subject to complex fabrication processes and capacity constraints, further exacerbates supply chain vulnerabilities. Shortages in semiconductor fabrication capacity, driven by increased demand for electronics and limited production capabilities, have led to prolonged lead times and allocation issues for critical components used in SoM manufacturing.

While System on Modules offer versatile solutions for integrated electronics applications, they face significant challenges related to supply chain disruptions and component shortages. Addressing these challenges requires proactive supply chain management, strategic partnerships, and agile adaptation to evolving market dynamics and geopolitical uncertainties

Key Market Trends

Increasing Adoption in IoT and Edge Computing Applications

System on Modules (SoMs) are witnessing a significant trend towards increased adoption in IoT (Internet of Things) and edge computing applications. As IoT continues to proliferate across industries, there is a growing demand for compact, versatile computing solutions that can support diverse IoT use cases ranging from industrial automation to smart home devices. SoMs provide a modular approach to integrating processing power, memory, storage, and connectivity features into IoT devices, allowing manufacturers to focus on application-specific development rather than designing complex hardware from scratch.

In edge computing, where data processing occurs closer to the source of data generation (at the edge of the network), SoMs play a crucial role in enabling real-time decision-making and reducing latency. Edge devices equipped with SoMs can handle intensive computing tasks locally, enhancing efficiency and responsiveness in applications such as autonomous vehicles, healthcare monitoring systems, and smart city infrastructure.

SoMs offer scalability and future-proofing capabilities by allowing easy upgrades and replacements of modules as technology evolves. This flexibility is particularly valuable in dynamic IoT environments where devices need to adapt to changing requirements and standards over time. As industries continue to embrace IoT and edge computing solutions for their operational benefits, the SoM market is poised to expand, driven by the need for reliable, high-performance computing platforms tailored to diverse IoT and edge applications.

Focus on Miniaturization and Power Efficiency

A notable trend in the SoM market is the emphasis on miniaturization and power efficiency. With the relentless drive towards smaller and more energy-efficient electronic devices, SoM manufacturers are innovating to deliver compact modules that consume minimal power while delivering robust performance. Miniaturization is critical in applications where space is constrained, such as wearable electronics, portable medical devices, and embedded systems in automotive and aerospace sectors.

SoMs integrate essential components like processors, memory, and I/O interfaces into a single compact package, optimizing space utilization on PCBs (Printed Circuit Boards) and reducing overall device footprint. This compact form factor not only enhances design flexibility but also enables the development of sleeker and more portable end-products without compromising on functionality or performance.

Advancements in semiconductor technologies and packaging techniques are driving improvements in power efficiency for SoMs. Low-power processors, optimized power management units, and energy-efficient peripherals contribute to extended battery life in battery-operated devices, which is crucial for mobile and IoT applications. Manufacturers are also focusing on optimizing software and firmware to leverage hardware capabilities effectively, further enhancing energy efficiency and overall system performance.

As industries across sectors seek to deploy energy-efficient and compact electronic solutions, the demand for miniaturized and power-efficient SoMs is expected to grow. This trend underscores the SoM market's evolution towards offering high-performance computing solutions in smaller form factors that meet the stringent power requirements of modern electronic devices.

Integration of AI and Machine Learning Capabilities

The integration of artificial intelligence (AI) and machine learning (ML) capabilities is transforming the SoM market, driving innovation and expanding application possibilities across various industries. AI and ML technologies are increasingly being embedded into SoMs to enable intelligent decision-making, predictive analytics, and autonomous operations in edge devices and IoT ecosystems.

SoMs equipped with AI/ML capabilities can process and analyze vast amounts of data locally, enabling real-time insights and actionable intelligence without relying on cloud connectivity. This capability is particularly valuable in applications where low latency and data privacy are paramount, such as autonomous vehicles, surveillance systems, and healthcare diagnostics.

AI-enabled SoMs empower developers to implement sophisticated algorithms and neural networks directly on edge devices, facilitating advanced functionalities like natural language processing, computer vision, and anomaly detection. This decentralization of AI processing not only enhances operational efficiency but also reduces bandwidth usage and cloud dependency in IoT deployments.

SoM manufacturers are collaborating with AI software developers and solution providers to offer pre-validated AI/ML frameworks and libraries optimized for their hardware platforms. This approach simplifies AI integration and accelerates time-to-market for AI-powered devices, making advanced capabilities accessible to a broader range of applications and industries.

As AI and ML continue to drive innovation across sectors, the SoM market is poised to capitalize on the demand for intelligent edge computing solutions. The integration of AI/ML capabilities into SoMs is expected to unlock new opportunities for innovation, differentiation, and value creation in diverse applications ranging from smart manufacturing and agriculture to smart homes and autonomous systems.

Segmental Insights

Application Insights

Industrial Automation segment held largest market share in 2023. The System on Module (SoM) market in the Industrial Automation segment is driven by several compelling factors that underscore its pivotal role in modernizing and optimizing industrial processes. SoMs, compact integrated computing platforms that encapsulate key hardware components such as processors, memory, and interfaces on a single module, are revolutionizing industrial automation by offering unparalleled versatility, scalability, and efficiency.

The demand for enhanced operational efficiency and productivity in industrial settings is a primary driver. SoMs empower industrial automation by providing a standardized, plug-and-play solution that accelerates time-to-market for new applications and reduces development costs. Manufacturers can seamlessly integrate SoMs into their automation systems, leveraging advanced processing capabilities to handle complex tasks such as real-time data processing, machine vision, and predictive maintenance. This capability is crucial in improving manufacturing throughput, reducing downtime, and optimizing overall equipment effectiveness (OEE).

The increasing adoption of Industry 4.0 principles and the Industrial Internet of Things (IIoT) is propelling the SoM market forward. SoMs serve as the foundational technology for building smart and connected industrial systems. They enable seamless connectivity to sensors, actuators, and other devices within the Industrial IoT ecosystem, facilitating data aggregation, analysis, and remote monitoring/control. This connectivity enhances operational visibility and enables proactive decision-making, transforming traditional manufacturing environments into agile, data-driven enterprises.

The versatility and modularity of SoMs cater to diverse industrial automation applications. Whether deployed in robotic control systems, automated guided vehicles (AGVs), programmable logic controllers (PLCs), or human-machine interfaces (HMIs), SoMs provide a flexible platform adaptable to varying performance and connectivity requirements. This adaptability not only future-proofs industrial automation investments but also enables scalability as businesses expand or upgrade their operations.

The SoM market benefits from advancements in semiconductor technology and miniaturization. Manufacturers continuously innovate to enhance SoM performance, power efficiency, and thermal management, making them suitable for harsh industrial environments characterized by temperature variations, dust, and vibrations. These technological advancements ensure reliability and longevity, crucial for mission-critical applications in industries such as automotive manufacturing, food and beverage processing, pharmaceuticals, and logistics.

Regulatory initiatives promoting energy efficiency and sustainability are driving the adoption of SoMs in industrial automation. By consolidating computing resources onto a single module, SoMs contribute to reducing power consumption and carbon footprint compared to traditional distributed computing architectures. This aligns with global efforts to achieve environmental sustainability goals while maintaining industrial competitiveness.

The SoM market in industrial automation is bolstered by a robust ecosystem of solution providers, offering comprehensive development kits, software frameworks, and support services tailored to specific industry requirements. This ecosystem fosters innovation and accelerates the deployment of SoM-based solutions across diverse industrial applications, ensuring seamless integration and interoperability with existing infrastructure.

The System on Module market in the Industrial Automation segment is driven by its ability to deliver scalable computing solutions that enhance operational efficiency, support Industry 4.0 initiatives, adapt to diverse applications, leverage technological advancements, promote energy efficiency, and benefit from a thriving ecosystem. As industrial automation continues to evolve, SoMs will play an increasingly integral role in enabling smarter, more connected, and sustainable manufacturing environments worldwide.

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Regional Insights

North America held largest market share in 2023. The System on Module (SoM) market has witnessed remarkable growth in recent years, with North America emerging as a dominant force in driving revenue within this sector. SoMs, also known as Computer on Modules (CoMs), are compact, self-contained computing solutions that integrate core components such as processors, memory, storage, and other essential features into a single module. This modular approach to computing offers significant advantages in terms of flexibility, scalability, and time-to-market for a wide range of applications across industries, including industrial automation, healthcare, automotive, consumer electronics, and more.

North America's prominence in the global SoM market can be attributed to several key factors. Firstly, the region boasts a robust ecosystem of technology companies, research institutions, and startups that are at the forefront of innovation in embedded systems and related technologies. This ecosystem fosters collaboration, knowledge sharing, and the rapid development of cutting-edge SoM solutions tailored to the diverse needs of various industries. North America is home to many leading semiconductor companies and SoM manufacturers, who play a pivotal role in driving technological advancements and shaping the competitive landscape of the market. These companies leverage their expertise in semiconductor design, system integration, and software development to deliver highly sophisticated SoM solutions with advanced features, superior performance, and robust security capabilities.

Another factor contributing to North America's dominance in the SoM market is the region's strong demand for embedded computing solutions across multiple industries. With the proliferation of Internet of Things (IoT) devices, smart appliances, autonomous vehicles, and other connected systems, there is a growing need for compact, energy-efficient computing platforms that can deliver high performance in a wide range of environments. SoMs address this demand by offering a scalable and customizable platform that enables developers to rapidly prototype and deploy innovative solutions tailored to specific applications.

North America's leadership in key end-user industries such as aerospace, defense, healthcare, and automotive drives significant demand for SoM solutions for mission-critical applications. These industries require reliable, ruggedized computing platforms that can withstand harsh operating conditions, maintain high levels of performance, and ensure data integrity and security. SoM manufacturers in North America have responded to these requirements by developing specialized products and solutions that meet the stringent standards and regulations of these industries. In addition to market demand and technological innovation, favorable government policies, incentives, and investments in research and development further bolster North America's position as a leading hub for SoM development and manufacturing. Initiatives aimed at promoting innovation, entrepreneurship, and collaboration between industry and academia contribute to the growth and expansion of the SoM ecosystem in the region.

Overall, North America's dominance in the global SoM market is driven by a combination of factors, including technological expertise, market demand, industry leadership, and supportive policies. As the demand for embedded computing solutions continues to grow across various sectors, North American companies are well-positioned to maintain their leadership and drive further innovation in the SoM market..

Recent Developments

• In January 2022, Avalue Technology introduced a series of panel kits designed for various display module applications. These kits can integrate the specifications of motherboards with diverse mechanical designs, catering to multiple uses.

Key Market Players

• Advantech Co., Ltd.
• Connect Tech Inc.
• AAEON Technology Inc.
• Avnet, Inc.
• EMAC Inc.
• Avalue Technology Inc.
• Axiomtek Co., Ltd.
• Eurotech S.p.A.
• Emerson Electric Co. 
• SECO S.p.A.

Report Scope:

In this report, the Global System on Module (SoM) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

                ·         System on Module (SoM) Market, By Type:

o   ARM Architecture

o   X86 Architecture

o   Power Architecture

                ·         System on Module (SoM) Market, By Standard:

o   COM Express

o   SMARC

o   Qseven

o   ETX/XTX

o   COM-HPC

o   Others

                ·         System on Module (SoM) Market, By Application:

o   Industrial Automation

o   Medical

o   Entertainment

o   Transportation

o   Test & Measurement

o   Others

                ·         Global System on Module (SoM) Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Asia-Pacific

§  China

§  India

§  Japan

§  South Korea

§  Indonesia

o   Europe

§  Germany

§  United Kingdom

§  France

§  Russia

§  Spain

o   South America

§  Brazil

§  Argentina

o   Middle East & Africa

§  Saudi Arabia

§  South Africa

§  Egypt

§  UAE

§  Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global System on Module (SoM) Market.

Available Customizations:

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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